South Dakota is continuing its process to make claiming lottery prizes easier for its residents.
Through the aid of International Game Technology (IGT), the South Dakota Lottery expects its Mobile Claims Process to be ready to go live in the fall of 2024.
Previously called “Scan and Redeem,” the Mobile Claims Process will allow players to electronically scan a winning ticket worth $101-$5,000 on their mobile or internet device. The winnings will then be sent to their bank account through Automated Clearing House.
Currently, South Dakota Lottery prizes over $100 require a player to mail in a winning ticket or visit a validation center.
Over the 77,000 square miles of South Dakota, there are just three validation centers in the state. They are located in Pierre, Rapid City, and Sioux Falls. Those are only open Monday-Friday during typical business hours.
“Most other lotteries have a cash-in limit of $599. Here in South Dakota, our cash-in limit is $100. This limits our players in the way they can claim prizes,” Clark Hepper, South Dakota Lottery Deputy Executive Director, said during a March 21 commission meeting. “We are going to make it easier for ($101-$5,000) prizes to be claimed and also reduce the cost to our players in claiming those prizes.”
Commission planning for Oct. 14 debut in South Dakota
During the March 21 South Dakota Lottery Commission meeting, an update was provided as to where the Mobile Claims Process timeline is at.
Currently, they are in the process of developing the business rules on how the application will work. From there, the commission will go into product development and testing.
Hepper mapped out the upcoming months of developing the product in hopes of an Oct. 14 launch for residents.
- April: Wrapping up the ideation process and gathering requirements for functionality.
- May: Developing the documents that detail the exact processes.
- September: As product is developed, a question-and-answer phase will be held to make sure the product is meeting the necessary requirements of the commission. Also, around the time administrative rules will need to be updated to accept new payment forms. Currently, lottery laws only allow payments to South Dakota residents to be made by check or cash. ACH payments will need to be included.
- October: Acceptance testing of the product with tentative plans for an Oct. 14 launch.
How Mobile Claims Process will work with the South Dakota Lottery
In order to use the mobile and online option, players would have to provide Social Security numbers and banking information. Payment would then be made to the account the player provides.
Players will not have the option to buy any South Dakota Lottery tickets through the app. South Dakota does not have a legalized online lottery yet for things like draw lottery games or keno.
IRS filings would still be required for a prize of $600 or more. Lottery players will still be able to collect prizes of $100 or less at one of the hundreds of retailers around the state.
According to the commission, around 5,400 prizes between $100-$500 were awarded in 2023.
Outstanding debts to be deducted from prizes
Part of the reason the South Dakota Lottery has such a low cash-in rate is due to a process it uses to make sure winners don’t have outstanding debts.
Any lottery winner over $100 is checked to see if they have outstanding financial debts to the state government. That can include entities like the Department of Social Services and Department of Labor.
Should a winner have outstanding debt, what is owed is taken from the winnings and given to the proper agency. Should any winnings remain, the player then receives that amount.
That process will continue with the Mobile Claims Process.
Previously, the state had attempted to just raise the cash-in rate for retailers to $599, but Gov. Kristi Noem vetoed the legislation. She cited the impact the debt background check on winners over $100 had on making sure past due child support was sent to the proper channels.
IGT aiding South Dakota in mobile application
The South Dakota Lottery’s ability to bring the Mobile Claims Process to its residents comes through its partnership with IGT.
Back in November, International Game Technology announced that its subsidiary, IGT Global Solutions Corporation, extended its contract with the South Dakota Lottery for five years, until 2031.
As part of the extension, IGT would provide its Scan and Redeem solution to the state.
IGT Chief Operating Officer of Global Lottery, Jay Gendron, discussed the partnership in a press release back in November:
“IGT’s Scan and Redeem component offers enhanced player options to better accommodate the South Dakota Lottery and its players. Our lottery technology is backed by decades of lottery industry leadership and incorporates the most secure, reliable and responsible functionality. Over the course of this extension, we are confident that the Lottery will continue to benefit from our advanced solutions, resulting in increased funds for the State’s good causes.”
Photo by PlayiLottery
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